Strategic Analysis of Reebok

Reebok International Ltd…Reebok International ltd…

Introduction: A subsidiary of German sportswear

giant Adidas, is a producer of athletic footwear, apparel, and accessories.

Started in 1890 with the name of J.W.Fooster and sons.

In 1960, two of the founder's grandsons Joe and Jeff Foster renamed the company Reebok in England.

In 1979, Paul Fireman, a US sporting goods distributor, saw a pair of Reeboks at an international trade show and negotiated to sell them in North America.

Logos Of Reebok:

Supplier information, according to the Reebok website as of May 2007:

Footwear factories in 14 countries; most are based in Asia.

China (Accounting for 51% of production).

Indonesia (21%), Vietnam (17%), Thailand (7%).

Over 75,000 workers.

Apparel… Factories in 45 countries. Most (52%) of Reebok's apparel sold

in the United States is produced in Asia, with the rest coming from countries in the Caribbean, North America, Africa and the Middle East.

Athletic Shoe Market Shares (in 2000):

Market Share

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

Nike Adidas Reebok New Balance

Market Share

Celebrate Individuality in Sport and Life: Reebok understands that people are,

above all, unique. Reebok’s positioning reflects this; celebrating the distinct qualities that make people who they are - their unique points of view, their individual style and their remarkable talents and accomplishments.

To Empower Global Youth to Fulfill their Potential: Commitment to Corporate Responsibility is

an important legacy and hallmark of the Reebok brand. For two decades, Human Rights, through the Reebok Human Rights program, were the primary focus of this effort. Reebok has expanded on what had been built and created a Global Corporate Citizenship platform with a purpose for the brand that will help underprivileged, underserved youth around the world fulfill their potential and live healthy, active lives.

IFE (Internal Factor Evaluation) Matrix:

Weaknesses:

EFE (External Factor Evaluation) Matrix:

CPM (Competitive Profile Matrix):

Porter’s Five Forces:

BCG Matrix:

TOWS:

SPACE:

SPACE Matrix; Strategies: X-Axis= CA+IS = -5+2 = -3 Y-Axis= FS+ES = 4-1 = +3 It lies in second quadrant so

the strategies should be; Market Development, Product Development, Market Penetration, Related diversification.

IE (Internal-External) Matrix:

It falls in the 4th quadrant so the strategy is; Grow and Build (Market Penetration, Market Development, Product Development). For 1st, 2nd and 4th.

Recommendations: They should improve their relations with

their largest distributors. The firm’s ROI has decreased and that need

to manage their new assets better. They should collect their accounts

receivable sooner to increase the profits. They should divest their unprofitable

divisions that don’t follow their marketing strategies like health and fitness clubs.

QSPM: List down key external factors

(opportunities & threats). Then list down key internal factors

(strengths & weaknesses). Give them weights according to their

treatment and average score. Find the total.

Alternative Strategies: Keep expanding into current and foreign

markets by being aggressive and the world wide leader of footwear industry.

Focus on improving working conditions and human rights at international manufactures centers and at the same time improve the productivity.

Implement product diversification with company’s newest technologies so resulting increased earnings could be reinvested to the R&D.

Why this strategy: U.S women prefer fashion not footwear,

they prefer clothing; we must create a new shopping style.

U.S kids influence by design and innovation, not only comforts or sports.

Reebok need to consolidate US sales compare to foreign sales and international competitors.

Difficult to expand towards other sports and population segments.

Any Question??? ORComments???